The U.K.’s Competition and Markets Authority (CMA) is launching “strategic market status” (SMS) investigations into the mobile ecosystems of Apple and Google.
The investigations constitute part of the new Digital Markets, Competition and Consumers (DMCC) Act which passed last year and came into effect in January. The Act includes new powers for the CMA to designate companies as having strategic market status if they are deemed to be overly dominant, and propose remedies and interventions to improve competition.
The CMA announced its first such SMS investigation last week, launching a probe into Google Search’s market share which is reportedly around the 90% mark. The regulator announced at the time that a second one would be coming in January, and we now know that it’s using its fresh powers to establish whether Apple and Google have strategic market status in their respective mobile ecosystems, which covers areas like browsers, app stores, and operating systems.
‘Holding back innovation’
Today’s announcement doesn’t come as a major surprise. Back in August, the CMA said it was closing a duo of investigations into Apple and Google’s respective mobile app ecosystems, which it had launched starting back in 2021. However, the CMA made it clear that this would be more of a pause, and it would be looking to use its new powers to address competition concerns around the two biggest players in the mobile services market.
In November, an inquiry group set up by the CMA concluded that Apple’s mobile browser policies and a pact with Google were “holding back innovation” in the U.K. The findings noted that Apple forced third-party mobile browsers to use Apple’s browser engine, WebKit, which restricts what these browsers are able to do in comparison to Apple’s own Safari browser, and thus limits how they can effectively differentiate in what is a competitive market.
As part of its new probe, the CMA has now confirmed that it will look at “the extent of competition between and within” Apple’s and Google’s respective mobile ecosystems, including barriers that may be preventing others from competing. This will include whether either company is using their dominant position in operating systems, app distribution, or browsers to “favour their own apps and services” — many of which are bundled by default and can’t always be uninstalled.
On top of that, the CMA said it would look into whether either company imposes “unfair terms and conditions” on developers that wish to distribute their apps through their app stores.
Alex Haffner, competition partner at U.K. law firm Fladgate, said that today’s announcement was “wholly expected,” adding that the more interesting facet is how this new probe fits into the broader changes underway at the U.K. regulator.
Indeed, news emerged this week that the CMA had appointed ex-Amazon executive Doug Gurr as interim chair, constituting part of a wider shift as the U.K. positions itself as a pro-growth, pro-tech nation by cutting red tape and bureaucracy.
“What is more interesting is how this fits into the current sea change which is engulfing the broader organisation of the CMA and in particular the very clear steer it is getting from central government to ensure that regulation is consistently applied with its pro-growth agenda,” Haffner said in a statement issued to TechCrunch. “We can expect this to feature heavily once the CMA gets its teeth stuck into the specifics of the DMCC regime, and its dealings with the tech companies involved.”
Remedies
Today’s announcement kickstarts a three-week period during which relevant stakeholders are invited to submit comments as part of the investigations, with the outcomes expected to be announced by October 22, 2025. While it’s still early days, potential remedies — in the event that Apple and Google are deemed to have strategic market status — include requiring the companies to provide third-parties with greater access to key functionality to help them better compete. It also may include making it easier to pay for services outside of Apple and Google’s existing app store structure.
In a statement issued to TechCrunch, an Apple spokesperson said that it will “continue to engage constructively with the CMA” as their investigation progresses.
“Apple believes in thriving and dynamic markets where innovation can flourish,” the spokesperson said. “We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users. In the U.K. alone, the iOS app economy supports hundreds of thousands of jobs and makes it possible for developers big and small to reach users on a trusted platform.”
Oliver Bethell, senior director for competition at Google, echoed this sentiment, noting that the company “will work constructively with the CMA.”
“Android’s openness has helped to expand choice, reduce prices and democratise access to smartphones and apps. It’s the only example of a successful and viable open source mobile operating system,” Bethell wrote in a blog post today. “We favour a way forward that avoids stifling choice and opportunities for U.K. consumers and businesses alike, and without risk to U.K. growth prospects.”
